WTI Crude Oil Finds Trendline Support at $77.50 After Pullback

The WTI crude oil price on Thursday pulled back before finding strong trendline support at about $77.50. The light crude oil appears to be trading within a gently descending channel formation in the 60-min chart.

The oil price has now plunged to trade a few levels below the 100-hour moving average line. However, the support level above $77.50 appears to be holding firm, thus preventing the crude oil price from descending to the oversold levels of the 14-hour RSI.

WTI Crude Oil Fundamentals Overview

From a fundamental perspective, light crude oil is trading at the back of a relatively busy period in the market. On Wednesday, the US durable goods orders for October beat the expected change of 0.4% with a change of 1%. Durable goods orders ex-defence and ex-transportation also outshone forecasts. On the other hand, nondefense capital goods orders ex-aircraft outshone the forecast of 0% with a change of 0.7%, while the Michigan consumer sentiment index for November beat the estimated reading of 55 with a reading of 56.8.

In the latest US crude inventory data, the API weekly crude oil stocks for last week increased marginally to -4.8 million up from the previous week’s equivalent of -5.835 million. On the other hand, the EIA crude oil stocks change for the same period beat the forecasted change of -1.055 million with a barrel count of -3.691 million, up from the previous week’s equivalent of -5.4 million barrels.

WTI Crude Oil Technical Analysis (the 60-min Chart)

Technically, the light crude oil price appears to be trading within a gently descending channel formation in the 60-min chart. This indicates a slight short-term bearish bias in the market sentiment.

Therefore, the bears will be looking to stretch the current declines toward $76.11 or lower to $73.70. On the other hand, the bulls will be targeting short-term profits at about $79.74 or higher at $81.96.

WTI Crude Oil Technical Analysis (the Daily Chart)

In the daily chart, the WTI crude oil price appears to be trading within a sharply descending channel formation. This indicates a strong long-term bearish bias in the market sentiment.

Therefore, the bears will be targeting long-term profits at about $71.01 or lower at $63.98. On the other hand, the bulls will be targeting potential rebound profits at about $84.29 or higher at $91.85.

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